William Blair Investment Management Boosts Stake in Champion Homes

William Blair Investment Management LLC has increased its holdings in Champion Homes, Inc. (NYSE: SKY) by a significant 30.9% during the third quarter of 2023. According to HoldingsChannel.com, the investment firm now owns 1,005,203 shares of Champion Homes, following an acquisition of an additional 237,037 shares. The total value of these holdings amounted to approximately $76.77 million at the close of the reporting period.

Other institutional investors have also adjusted their stakes in Champion Homes. For instance, CWM LLC raised its holdings by 7.0%, now owning 2,410 shares valued at $184,000 after purchasing an extra 157 shares. Similarly, Nisa Investment Advisors LLC increased its position by 33.7%, acquiring 215 additional shares to reach 853 shares valued at $65,000.

The Arizona State Retirement System also made a minor adjustment, boosting its position by 1.4% to own 16,103 shares worth $1.23 million. Meanwhile, Arkadios Wealth Advisors increased its holdings by 3.7% and Parkside Financial Bank & Trust significantly lifted its stake by 257.4%, acquiring 278 additional shares to now hold 386 shares valued at $29,000.

Analysts Offer Mixed Reviews

Recent analyses of Champion Homes stock reveal a range of opinions. Zelman & Associates downgraded its rating from “outperform” to “hold” on February 5, 2024, while CJS Securities upgraded the company to a “strong-buy” on December 11, 2023. Weiss Ratings reaffirmed a “hold (c)” rating, and Zacks Research improved its rating from “strong sell” to “hold” on November 4, 2023. Barclays raised the target price for Champion Homes from $100.00 to $111.00, assigning an “overweight” rating on January 15, 2024.

Currently, one analyst rates the stock as a Strong Buy, two as Buy, and three as Hold, leading to an average rating of “Moderate Buy” with a consensus price target of $106.00, according to MarketBeat.

Current Stock Performance

On February 5, 2024, Champion Homes shares opened at $93.39. Key financial indicators include a debt-to-equity ratio of 0.01, a quick ratio of 1.89, and a current ratio of 2.71. The stock has experienced a fifty-two week low of $59.44 and a high of $103.93. The company has a market capitalization of $5.16 billion, a price-to-earnings (P/E) ratio of 24.84, and a beta of 1.02.

Champion Homes last reported earnings on February 3, 2024, revealing earnings per share (EPS) of $0.96. This figure exceeded the analysts’ consensus estimate of $0.83 by $0.13. The company reported revenue of $656.61 million for the quarter, surpassing expectations of $649.40 million. Compared to the previous year, revenue growth was recorded at 1.8%, although EPS declined from $1.04 year-over-year. Analysts predict that Champion Homes will achieve an EPS of $3.63 for the current fiscal year.

Insider transactions have also been noteworthy. On December 12, 2023, Vice President Timothy A. Burkhardt sold 12,183 shares at an average price of $87.41, totaling $1.06 million. Following this transaction, Burkhardt retained 33,230 shares valued at approximately $2.90 million, marking a 26.83% decrease in his ownership. Additionally, Executive Vice President Joseph A. Kimmell sold 1,800 shares on December 11, 2023 for a total of $159,030, which represented a 3.22% reduction in his stake.

As of now, insiders collectively hold 1.20% of the company’s stock. Champion Homes operates primarily as a leading provider of factory-built housing solutions in North America, focusing on the design, manufacture, and sale of both manufactured and modular homes. The company serves a diverse range of customers, from first-time homebuyers to those seeking luxury properties, leveraging vertically integrated operations for efficiency and quality.